Gov. Brown To Release Revised Budget Plan

Gov. Jerry Brown will release his revised budget proposal for California Monday, but recent improvements to state revenue could create a problem for him.

The governor is still expected to ask for an extension in tax increases set to expire June 30 to balance the state’s remaining $15.4 billion deficit. Brown says the tax hikes are crucial to help address the state’s budget shortfall for the fiscal year that begins July 1.

KESQ.com will stream the governor’s news conference at 11 a.m. online

Democratic lawmakers have been stressing that billions more would have to be cut from education, shortening the school year and enlarging class sizes. But Republicans say that California’s economy is improving and recent growth in state tax revenue is enough to protect education.

The governor and Democratic lawmakers already have reduced the original $26.6 billion deficit through spending cuts and transfers between government funds.

The governor could opt to release two budgets. One could include the tax increases, while another might show what would happen if the entire deficit is closed solely through spending cuts.

There’s one month left to reach a budget deal, before the deadline set by California’s constitution.